Silicon Valley House Prices – No K-Shaped Trend

Headlines and stories are constantly talking about K-shaped economic trends. Is there a K-shaped trend to Silicon Valley house prices? No. There isn’t.

If there were a K-shaped trend, the difference between the average Silicon Valley house price and the median Silicon Valley house price should change, with the average price growing faster than the median price.

For the last 25 years the separation between the average Silicon Valley house price and the median Silicon Valley house price has remained quite constant.

When looking at Silicon Valley house prices, the large number of median-priced houses might overwhelm the price trends of luxury houses. Comparing Atherton (luxury) house prices to Mountain View (median) house prices provides a quick look for a K-shaped trend.

Mountain View house sales prices have paralleled Atherton house sales prices fairly closely for the last 12 years. There is no indication of a K-shaped trend.

Atherton Vs Redwood City House Prices

Comparing Atherton, in San Mateo County, to Mountain View, in Santa Clara County, may reveal differences between counties rather than simply luxury vs. median differences. Comparing Atherton (luxury) house prices to the adjacent Redwood City (median) house prices removes any county differences.

Redwood City house prices have closely paralleled Atherton’s since 2002. There is no indication of a K-shaped trend.

Housing Types Show K-Shaped Trends

There is a divergence between house prices and condo prices in Silicon Valley. These two housing types have numerous different factors that affect their prices. These factors can not be removed so that a comparison between luxury vs less expensive housing can be made solely based on the price range.